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Monday, May 2, 2016

By Molly Elifritz
University of Kentucky School of Journalism and Media

Last
Monday, the Midway City Council authorized Mayor Grayson Vandegrift to sign a contract with Rumpke Waste and Recycling that contained an 8 percent price increase for residential
customers. The price increase means that the current rate of $11.95 would escalate to $12.91.

During
the meeting, Rumpke representative Stacey Chambers said the 8 percent
price inflation for residential customers was a reflection of the Consumer Price Index. In an interview, Chambers said that the price increase was a representation of the CPI over the past four years as well as an estimation of where the CPI will be in the next two years, after the contract renewal.

However, the CPI has risen only 3.7 percent since 2012, and according to the Federal
Reserve System estimates, it is expected to rise 1.5
percent this year and 2.2 percent next year. That would put the projected CPI at 7.4 percent, not 8 percent. (Compounded, the ultimate rate would be 7.57 percent.)

When
asked about Rumpke's estimated CPI, Mayor Grayson Vandegrift said, “We will
study the CPI closer and kind of get a better idea about exactly why Rumpke
feels the charge is necessary.”

Vandegrift
said he noticed the 96-cent monthly increase a few weeks ago when he was presented
with the raw numbers of the new contract but “I didn’t know they were basing
that figure off the CPI until the council meeting.” Being a man of
business, Vandegrift said, he understands that “unfortunately” prices increase
as the economy grows.

After
looking into what other companies are charging, Vandegrift still believes that
Rumpke is offering a competitive price and most importantly, good services.

“From
what I have found in the past, Rumpke is a much more competitive company than a
lot of others and they offer, in my opinion, probably a better service than a
lot of companies do because they are really easy to work with,” said
Vandegrift.

Although
the council authorized Vandegrift to sign the Rumpke contract, he isn’t ready
to sign on the dotted line just yet. “Just like any other contract, I always go
in and check things before we do,” he said. Vandegrift said the contract should call for rebidding in 2018.

Vandegrift
said that this isn’t the first time that the city has delayed the signing of a
contract. Just last year Vandegrift chose to restrain from signing an easement
for Columbia Gas of Kentucky, to build a new regulator, until the company fixed
a poor paving job in front of the Midway Grocery. “We’ll have to get this
settled out before I sign anything,” said Vandegrift.

Vandegrift
seems to think that the contradicting numbers stem from miscommunication. “I
really don’t think there was any ill intent in not letting us know about the
CPI aspect of it. If anything there is a chance our wires got crossed,” he
said.

Vandegrift
said that the council gave him the authority to execute the contract because no
matter what, everyone “unanimously” felt like they were getting a good service.
“Overall their service has been excellent; they’ve always been open and honest
with us.”

Rumpke is a privately owned waste and recycling company, based north of Cincinnati, that provides services to commercial and residential properties throughout Kentucky, Ohio, Indiana and West Virginia.

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News in and around the small but surprisingly interesting town of Midway, Ky., reported, written and photographed by students in community journalism classes in the University of Kentucky School of Journalism and Media, taught by Associate Extension Professor Al Cross, director of the Institute for Rural Journalism and Community Issues,www.RuralJournalism.org.